Civil Code Art. 2209: Actual or Compensatory

Statute: Civil Code
Article: Art. 2209
Topic: Actual or Compensatory Damages
Book: BOOK IV Obligations and Contracts
Title: TITLE XVIII DAMAGES
Chapter: CHAPTER 2 Actual or Compensatory Damages
Formerly: Art. 1108 of the old Civil Code
Year: 1949

The provision

If the obligation consists in the payment of a sum of money, and the debtor incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon, and in the absence of stipulation, the legal interest, which is six per cent per annum. (1108)

Note on current application: the legal interest rate in the Philippines is 6% per annum (Bangko Sentral ng Pilipinas Circular No. 799), as established in Nacar v. Gallery Frames (G.R. No. 189871, August 13, 2013).

Cases applying this article

Land Bank of the Philippines v. Alfredo Ong G.R. No. 190755
Rosalina Ricafuente v. Oriental Construction G.R. No. 249306
Francisco G. Chan v. Bank of the Philippine Islands G.R. No. 247776
Philippine Commercial v. William Golangco Construction Corporation G.R. No. 195372
Philippine National Bank v. Lilibeth S. Chan G.R. No. 206037
Ibm Philippines v. Prime Systems Plus G.R. No. 203192
Spouses Bayani H. Andal v. Philippine National Bank G.R. No. 194201
Spouses Nameal v. Spouses Juan G.R. No. 172346

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